Construction of Two More Malaysia Coast Guard Offshore Patrol Vessels to Proceed – Minister
The Secretary-General of Malaysia Home Ministry, Datuk Awang Alik Jeman, has been tasked with reviewing all related matters, including identifying a new shipbuilding company to replace THHE Destini for the construction of the Malaysian Maritime Enforcement Agency’s (MMEA) Offshore Patrol Vessels (OPVs).
(DEFENCE SECURITY ASIA) – The construction of two additional Offshore Patrol Vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA) will continue despite the termination of the original contract with the shipbuilder last year.
The announcement was made today by Home Minister Datuk Seri Saifuddin Nasution Ismail.
According to him, the Secretary-General of the Home Ministry, Datuk Awang Alik Jeman, has been tasked with reviewing all relevant matters, including identifying a new shipbuilding company to undertake the OPV project.
“As we are aware, the MMEA has only received one of the three OPVs—Maritime Vessel (KM) Tun Fatimah—which is already in service, safeguarding the nation’s waters.
“However, the remaining two OPVs have yet to be delivered, leading to a Cabinet decision for a mutual termination of the contract. As such, I have set a clear direction that the project must continue,” he said in Putrajaya today.
Earlier reports indicated that the government had terminated its contract with THHE Destini Sdn Bhd (TDSB) after the company failed to complete the construction of the remaining two OPVs.

In a parliamentary response last week, Saifuddin Nasution confirmed that the contract termination was finalized on December 31, 2024.
He also revealed that the company had been subjected to Liquidated and Ascertained Damages (LAD) exceeding RM12 million due to delays in completing OPV 2 and OPV 3.
Saifuddin Nasution further stated that the government had already spent over RM600 million on the construction of the three OPVs, yet only one vessel was delivered by the contractor.
“We have spent a significant amount. This is an issue inherited from the previous administration. However, we are not here to play the ‘blame game’,” he said.
The government initially signed a contract with THHE Destini in 2017 to procure three OPVs for the MMEA at a cost of RM740 million, with the vessels originally scheduled for delivery in 2022.
However, financial difficulties faced by THHE and the impact of the COVID-19 pandemic resulted in construction delays at the shipyard in Pulau Indah.
